Most of my houses are bank owned. I actually just bought a foundation from a builder that went under for 20K. Foundation alone is worth 17K, I'll have about 100 into the whole project when it is done and the house should sell easily for about 155K.
I also bought a foreclosure to use as a rental. Purchase = 50K, 10K Rehab, Refi at $75K, pull 15K out for capital and rent the house out. Mortgage/tax/insurance $660, rent $900 so making $240 a month plus pulling out $15K.
Then on the same day I bought a house on short sale for 75K, assessed at 150, rehab =20K, sell at 129,900.
Things aren't as bad as they seem.
I also bought a foreclosure to use as a rental. Purchase = 50K, 10K Rehab, Refi at $75K, pull 15K out for capital and rent the house out. Mortgage/tax/insurance $660, rent $900 so making $240 a month plus pulling out $15K.
Then on the same day I bought a house on short sale for 75K, assessed at 150, rehab =20K, sell at 129,900.
Things aren't as bad as they seem.
Most of San Diego county is a nice and desirable area, so it is higher priced. Shoot me a PM of what you are looking for. Bed/Bath, price range. I work with a decent size network of other investors out here in Southern CA. Many of them have large profiles and we are always bouncing deals off each other
Builder here. We just started back building again and have had some success. It seems to be getting better everyday. It is all about price points and inventory in those markets. The backbone in this market is fighting enemy #1, foreclosures, when trying to sell. Offer more bang for the buck. It might not always be cheaper, but it has to be relative in the price. Most foreclosures need Mucho work that most buyers would rather not fool with if they found another deal that was move-in ready.
